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Imagine if Big Capital started investing in cities instead of companies. That would be a nice thought. Property would be the new stock; hostile takeovers would
by QML 9y ago
Imagine if Big Capital started investing in cities instead of companies. That would be a nice thought.
Property would be the new stock; hostile takeovers would be fights over the city-government board.
Investors would profit when they managed to increase the value of the properties they own. So they start building better public schools, improve the local infrastructure, make the downtown a bit more appealing, etc. -- Hell, why not build a community college, an actual communal one where anyone can freely attend, and have that as the new "church"?
Of course there's the issue with gentrification -- which I'm not sure is avoidable given the influx of capital -- but if equal access to these new resources is guaranteed, an investment in cities may perhaps produce compound interest not only for the investors but also for the residents long term.
Thoughts?
- eli_gottlieb 9y agoThis is basically how Big Real Estate already treats most cities.
- ABCLAW 9y agoYes. Developers that obtain approval for neighbourhood plans operate in exactly this manner, putting in sewage, roads, schools, parks, etc. in order to improve the value of the commercial/residential units they are selling. Additionally, some less 'saleable' improvements end up being included as concessions in negotiation with the local municipal authority to get the development plan approved. Public transit financing in greenfield areas works similarly.